Intellectual capital efficiency and corporate book value: evidence from Nigerian economy

Purpose – The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysingtherelationshipbetweenICefficiency(ICE)andcorporatebookvalueoflistedfirmsonmainboard of Nigeria Stock Exchange. Design/methodology/approach – This study applies the resource-based theory in...

Full description

Bibliographic Details
Main Authors:	Anifowose, Mutalib, Abdul Rashid, Hafiz Majdi, Annuar, Hairul Azlan, Ibrahim, Hassan
Format:	Article
Language:	English English English
Published:	Emerald Publishing Limited 2018
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/63822/ http://irep.iium.edu.my/63822/ http://irep.iium.edu.my/63822/ http://irep.iium.edu.my/63822/7/63822%20Intellectual%20capital%20efficiency%20and%20corporate%20book%20value%20SCOPUS.pdf http://irep.iium.edu.my/63822/13/63822_Intellectual%20capital%20efficiency%20and%20corporate%20book%20value_article.pdf http://irep.iium.edu.my/63822/19/63822_Intellectual%20capital%20efficiency%20and%20corporate.wos.pdf

id	iium-63822
recordtype	eprints
spelling	iium-638222019-01-03T01:39:32Z http://irep.iium.edu.my/63822/ Intellectual capital efficiency and corporate book value: evidence from Nigerian economy Anifowose, Mutalib Abdul Rashid, Hafiz Majdi Annuar, Hairul Azlan Ibrahim, Hassan HF5601 Accounting. Bookkeeping Purpose – The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysingtherelationshipbetweenICefficiency(ICE)andcorporatebookvalueoflistedfirmsonmainboard of Nigeria Stock Exchange. Design/methodology/approach – This study applies the resource-based theory in formulating two hypotheses that guide the results analysis. By employing a two-step dynamic system generalised method of moments (GMMs), and controlling for the possible endogeneity effect on the parameters estimated, for a sampleof 91 listedfirmson main boardof NigeriaStock Exchange, this studyinvestigates theassociationof ICEandcorporatebookvalue,namely,cashflowfromoperationandeconomicvalueadded(EVA),usingdata over the 2010 to 2014 financial years. Findings – The results show a significant positive relationship between overall ICE and corporate book value (cash flow from operation and EVA). This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders. Research limitations/implications – The generalisation of the results to smaller firms, in the alternative securities market, may be inappropriate as study sampled listed firms on the main board of Nigerian Stock Exchange. Practical implications – Those charged with governance should be concerned with the investment and management of IC as it enhances the economic value and operating cash flow in line with the resource-based theory. Originality/value – This study is first to consider the ICE study across all sectors in the Nigerian economy using modified Pulic value added intellectual capital. The study controls for heteroscedasticity and endogeneity issues by adoption of two-step dynamic system GMMs. Emerald Publishing Limited 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/63822/7/63822%20Intellectual%20capital%20efficiency%20and%20corporate%20book%20value%20SCOPUS.pdf application/pdf en http://irep.iium.edu.my/63822/13/63822_Intellectual%20capital%20efficiency%20and%20corporate%20book%20value_article.pdf application/pdf en http://irep.iium.edu.my/63822/19/63822_Intellectual%20capital%20efficiency%20and%20corporate.wos.pdf Anifowose, Mutalib and Abdul Rashid, Hafiz Majdi and Annuar, Hairul Azlan and Ibrahim, Hassan (2018) Intellectual capital efficiency and corporate book value: evidence from Nigerian economy. Journal of Intellectual Capital, 19 (3 (Special Issue: Intellectual Capital of Africa: Issues, Programmes, Perspectives)). pp. 644-668. E-ISSN 1469-1930 https://www.emeraldinsight.com/doi/abs/10.1108/JIC-09-2016-0091 10.1108/JIC-09-2016-0091
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Anifowose, Mutalib Abdul Rashid, Hafiz Majdi Annuar, Hairul Azlan Ibrahim, Hassan Intellectual capital efficiency and corporate book value: evidence from Nigerian economy
description	Purpose – The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysingtherelationshipbetweenICefficiency(ICE)andcorporatebookvalueoflistedfirmsonmainboard of Nigeria Stock Exchange. Design/methodology/approach – This study applies the resource-based theory in formulating two hypotheses that guide the results analysis. By employing a two-step dynamic system generalised method of moments (GMMs), and controlling for the possible endogeneity effect on the parameters estimated, for a sampleof 91 listedfirmson main boardof NigeriaStock Exchange, this studyinvestigates theassociationof ICEandcorporatebookvalue,namely,cashflowfromoperationandeconomicvalueadded(EVA),usingdata over the 2010 to 2014 financial years. Findings – The results show a significant positive relationship between overall ICE and corporate book value (cash flow from operation and EVA). This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders. Research limitations/implications – The generalisation of the results to smaller firms, in the alternative securities market, may be inappropriate as study sampled listed firms on the main board of Nigerian Stock Exchange. Practical implications – Those charged with governance should be concerned with the investment and management of IC as it enhances the economic value and operating cash flow in line with the resource-based theory. Originality/value – This study is first to consider the ICE study across all sectors in the Nigerian economy using modified Pulic value added intellectual capital. The study controls for heteroscedasticity and endogeneity issues by adoption of two-step dynamic system GMMs.
format	Article
author	Anifowose, Mutalib Abdul Rashid, Hafiz Majdi Annuar, Hairul Azlan Ibrahim, Hassan
author_facet	Anifowose, Mutalib Abdul Rashid, Hafiz Majdi Annuar, Hairul Azlan Ibrahim, Hassan
author_sort	Anifowose, Mutalib
title	Intellectual capital efficiency and corporate book value: evidence from Nigerian economy
title_short	Intellectual capital efficiency and corporate book value: evidence from Nigerian economy
title_full	Intellectual capital efficiency and corporate book value: evidence from Nigerian economy
title_fullStr	Intellectual capital efficiency and corporate book value: evidence from Nigerian economy
title_full_unstemmed	Intellectual capital efficiency and corporate book value: evidence from Nigerian economy
title_sort	intellectual capital efficiency and corporate book value: evidence from nigerian economy
publisher	Emerald Publishing Limited
publishDate	2018
url	http://irep.iium.edu.my/63822/ http://irep.iium.edu.my/63822/ http://irep.iium.edu.my/63822/ http://irep.iium.edu.my/63822/7/63822%20Intellectual%20capital%20efficiency%20and%20corporate%20book%20value%20SCOPUS.pdf http://irep.iium.edu.my/63822/13/63822_Intellectual%20capital%20efficiency%20and%20corporate%20book%20value_article.pdf http://irep.iium.edu.my/63822/19/63822_Intellectual%20capital%20efficiency%20and%20corporate.wos.pdf
first_indexed	2023-09-18T21:30:31Z
last_indexed	2023-09-18T21:30:31Z
_version_	1777412479920373760

Intellectual capital efficiency and corporate book value: evidence from Nigerian economy

Similar Items